Part 1

On Nov 17 2021, the cash price of #2 cotton was 114.60 cents/lb. Calculate the cost of carry of cotton from Nov 2021 to March 2022 (4 months) assuming that the borrowing interest rate is 7% per year, storage and insurance rate for every pound of cotton is .5 cents per month. shipping cost is .20 cents, and no other cost. Please, enter the numeric value.

Part 2

Refer to the cash price of cotton #2 and your cost of carry function from part 1. What is your calculated full-carry price for ICE march 2022 cotton future contract? Please, enter the numeric value only.

Part 3

Refer to the answers from part 1 and 2, On November 2021, the ICE March 2022 cotton futures contract settled at 119.874 cents/lb. Was there any cash-futures arbitrage opportunity?

Part 4

If there was an opportunity, what would be the arbitrage profit? Numeric values only.